Banks with less than $250 billion that aren’t otherwise targeted by the Fed would no longer be subject to yearly stress tests or higher capital requirements. Those banks will also be freed from submitting a yearly plan on how they would dismantle upon failure without triggering a credit crisis.

“We have not been shy about reaching below [$250 billion]” Powell said. “The parts of the bill I’m familiar with, they really apply to banks $250 [billion] and under.”

Powell also said he supported the provision to exempt banks with less than $10 billion in assets from the “Volcker Rule” banning certain risky investments with a firm’s own capital.

The bill also exempts smaller banks from a slew of restrictions on lending to subprime borrowers and expands the scope of legal mortgage holdings. Its supporters insist it would relieve safe and relatively small banks from unnecessary regulatory burdens hindering the economy.

Powell said the bill wouldn’t relax rules on giant domestic banks or global firms without U.S. subsidiaries.

“Our focus is very much on the small and medium-size banks,” Powell said. “We want the post-crisis regulatory initiatives like higher capital, higher liquidity, stress tests, resolutions — we want to apply those in the strongest forms to the largest institutions.”

The bill has 12 Democratic co-sponsors and no stated GOP opponents. It’s almost certain to pass the Senate and become the most substantial bipartisan effort to roll back Dodd-Frank to clear a chamber of Congress.

Democrats and progressive political groups have rallied opposition on the left. Liberals are attempting to amend the bill and add provisions that would boost oversight of some areas of the financial sector.

Banking panel Democrats opposed to the bill brought up a slew of scandals involving foreign banks such as Deutsche Bank and Santander they believe would benefit from the measure.